The By-elections

Press, Volume CVI, Issue 31349, 20 April 1967, Page 14

The By-elections

Sir, —Mr Bray asserts that money is continuously being issued and th<*n “cancelled in payment of bank loans.” But banks are in business to lend money, and money paid In as deposits or to repay loans can be lent out again or kept in the bank’s reserve if required by law—not cancelled. As banks pay interest on deposit accounts or carry out transactions op non-interest-bearing cheque accounts, they must charge interest on loans. According to Samuelson (“Economics”) an individual private bank can lend only money which is deposited with it; it cannot create money by a stroke of a pen. But the effect of the circulation of money through many bank accounts is to increase the total new money circulating to five or six times the amount originally issued, by the Government—Yours, etc., JOHN WILSON. April 19, 1967.

Sir,—lt is almost incredible that the Fendalton electorate, which has always been represented by such distinguished members, should have allowed Labour to gain an election night lead out of sheer apathy on the part of electors. Surely the hard-won privilege of democratic elections is one that we should guard jealously. Apathy could be the Government’s strongest opponent at any election. Perhaps the National Party might combat this with a “Remember Fendalton” slogan. If this does not shake the apathy out of supporters, defeat of the Government and a term of Labour in office most surely will!—Yours, etc.,

„ VOTE-CONSCIOUS. April 18, 1967.

Sir, —“Sophocles” is wrong, as Mr Kirk’s view that the results of the Fendalton byelection show a vote of confidence in Labour is not merely confirmed by electionnight figures, but also by the fact that Mr Marshall and Mr Holyoake are dissatisfied with the conversion of this once safe National seat into .either a loss or a marginal seat. The swing towards Labour in both Fendalton and Petone is caused by the public's realising that they were deceived by the Government last election. The upsurge of Social Credit has halted because of Mr Cracknell’s statement at Petone that he was opposed to the policy of Re-

serve Bank credit instead of loans. —Yours, etc., DISILLUSIONED NATIONALIST. April 19, 1967.